Early Stage of IFRS S2 Readiness: Sustainability Disclosure of Indonesian Public Companies in Supporting SDGs

If all parties ignore climate change, its impacts will affect the lives of all living things on Earth. This aligns with the Sustainable Development Goals (SDGs), particularly SDG 13 on Climate Action, which emphasizes the importance of concrete action in addressing climate change. The International Sustainability Standards Board (ISSB) has developed standards to provide a foundation for high-quality global sustainability disclosures. Disclosure based on IFRS S2-Climate Relate Disclosure (IFRS S2) will increase trust in companies regarding information disclosure regarding climate-related risks and opportunities and sustainability issues, which serve as a basis for global investors' investment decisions. This study aims to assess the extent to which IFRS S2 has been implemented in Indonesia. Importantly, this research represents the early stage of identifying sustainability disclosures based on IFRS S2 to measure the initial readiness of Indonesian public companies in implementing the standard. Considering that state-owned (Badan Usaha Milik Negara / BUMN) (SOEs) and non-state-owned enterprises (non-BUMN) (non-SOEs) are the two main types of companies in Indonesia, this study will examine whether there is a difference in readiness for IFRS S2 disclosure between SOEs and non-SOEs. The results of this study demonstrate that there is a significant difference in IFRS S2 disclosure between SOEs and non-SOEs. SOEs are more prepared to implement IFRS S2 compared to non-SOEs.